IBAT News

TechMecca 2014


We invite you to register for TechMecca 2014!  This year's event theme is C (Compliance) - O (Operations) - R (Risk Management) - E (Enterprise Efficiency)!

Compliance sessions include:

  • Is Your Bank Ready for Today's Mortgage Customer?
  • EMV Forum: Following the Expectations of EMV and How it Will Impact Your Bank, Merchants and Customers
  • Current IT Challenges in Banking and Efficient Solutions
  • The Lurking Menace: Cybercrime, Data Security and Privacy Rights
  • The A to Z's of Vendor Management
  • Understanding and Building a Proactive ATM Upgrade Plan to Stay Compliant and Competitive

Operations sessions include:

  • Banker Perspectives: Mobile Strategy;
  • Federal Reserve Payments Update;
  • Leveraging Big Data for Big Results;
  • Current IT Challenges in Banking and Efficient Solutions;
  • Understanding and Building a Proactive ATM Upgrade Plan to Stay Compliant and Competitive; and
  • Emerging Technologies:  IT & Operations in Light of Financial Reform.

Conference Registration Fees (Three-for-One Pricing)
$695 for up to three attendees from the same financial institution if registered at the same time. You must pre-register to be eligible for this offer.  No free registrations will be granted on site. Each additional or any single registrant will be $445 per person.

2013: A Year in Review

As we close the book on 2013, we pause to take a brief look back at the year that was.  The IBAT Bottom Line will return next Tuesday, January 7 with regular weekly publications.  Until then, here are the three "hottest" stories in Texas community banking of 2013.

CFPB - Given that this acronym was the most commonly appearing word or phrase in the IBAT Bottom Line in 2013, it's little wonder why the "new kid" regulator has earned the ire of community bankers. Most of the attention has been on the CFPB Mortgage Rules, which begin to take effect throughout January.  In response, the IBAT compliance team has been hard at work throughout the year to develop white papers, compliance matrices and other resources to help your bank adjust to the new rules.  All of these resources can be found on the CFPB Residential Mortgage Rules page on the IBAT website. Other resources developed by our compliance team can be found here.

Towards Regulatory Reform - It seems like every other week we reported on another voice joining the chorus calling for substantial regulatory reform and a bifurcated industry.  The Dallas Fed, FDIC Vice Chairman Tom Hoenig and CSBS's John Ryan were just a few leading the charge.  To date, the most promising measure for regulatory reform remains the Community Lending Enhancement and Regulatory Relief (CLEAR) Act. Congressmen John Carter and Lamar Smith recently joined Representatives Granger, Farenthold, Marchant, Neugebauer, Thornberry, Veasey and Williams in supporting the bill.  Congressmen Sessions and Cuellar have signaled their intention to sign on as well.  IBAT members are encouraged to contact their members and urge support using the ICBA Action page

83rd Texas Legislature - While much of the attention has been on Congress and Federal regulators in 2013, this year brought the “fun” of a super-sized Texas Legislative Session.  With strong response and support from IBAT members, Texas became the first state to pass a prohibition on debit card transaction surcharges at the point of sale.   

January 1, 2014 stands as the implementation date for several other measures passed in the 83rd Texas Legislature, all of which are identified in IBAT General Counsel Karen Neeley's legislative white paper.

Staff contact: Chris Williston, cwilliston@ibat.org, 512-474-6889

Week in Review: December 27, 2013


The bond market celebrated the holiday by creeping back up to higher yield levels. In extremely thin trading, the 10yr T-Note yield climbed slightly above 3.00%, its loftiest perch in two years. The short end of the curve, however, remains well below the highs from late summer as the 2yr yield languishes around 40bps. This reflects the market’s realization that “tapering is not tightening”... a message the Fed has been keen to reinforce... Read more in the Baker Market Update.

 

Merry Christmas!


On behalf of Chairman Jay Gober, as well as the entire IBAT staff and board of directors, we wish you a very Merry Christmas.  May your week be filled with joyful celebration in the presence of family and friends.  Most importantly, may every gift you receive be a reminder of the ultimate gift we pause to celebrate each Christmas. 

Thank you for the opportunity to serve Texas community bankers and for the ever important role you play in the lives of Texans.

The IBAT office will be closed Tuesday, December 24th and Wednesday, December 25th.  We will reopen with normal business hours on Thursday December 26th.

IBAT in D.C.


IBAT President and CEO Chris Williston, IBAT’s Executive Vice President Steve Scurlock and General Counsel Karen Neeley were on Capitol Hill last week in an attempt to continue to move the legislative needle on two much-needed reforms; regulatory relief and patent abuse.

In a number of meetings with House and Senate members and staff, IBAT urged Members to co-sponsor H.R. 1750/S. 1349, the Community Lending Enhancement and Regulatory Relief Act, (aka, the CLEAR Act). The measure, which has garnered over 90 bi-partisan co-sponsors in the House and 19 members of the U.S. Senate appears to be the possible vehicle for obtaining regulatory relief for community banks in this Congress.

In addition, IBAT joined a large coalition of banking and small business interests in urging the Senate to take quick action and advance measures to protect community banks from patent-assertion entities.  These entities assert infringement of business-method patents of dubious quality by legitimate businesses, including community banks. The House of Representatives has already passed such legislation, and it is believed that the Obama administration supports the measure.

Meetings were also held with three key federal regulatory agencies - The Federal Reserve, Office of Comptroller of the Currency and the Consumer Financial Protection Bureau.  We had the opportunity to candidly discuss the concerns expressed to us by community bankers across the state, and will be following up on several key areas over the coming weeks. 

As we reported earlier in the week, the IBAT Board of Directors has directed IBAT staff to step up its involvement in D.C. and provide greater assistance to its national association affiliate ICBA.  IBAT announced a new retainer relationship beginning in January 2014 with the Policy Resolution Group of Bracewell and Giuliani to provide additional "boots on the ground" to advance key legislative initiatives for community banks.

IBAT members are encouraged to contact both Senators John Cornyn (202-224-2934) and Ted Cruz (202-224-5922) and ask that they sponsor H.R. 1750/S. 1349.  IBAT has been advised by Senate Banking Committee staff that regulatory relief legislation will likely be taken up by the committee in the first quarter of 2014.

FWIT Newsletter


Financial Women in Texas (FWIT) released their December Newsletter last week, highlighting upcoming events and news from around the state. In this month's edition:

  • A Message from FWIT Association President - Janet Dirba
  • 2014 Annual Conference Date & Location
  • Member News
  • FWIT Group News

If you are interested in learning more about Financial Women in Texas, please contact Darlene Revers at drevers@ibat.org.

FDIC Proposed Rules


On December 10, IBAT filed its comment letter in response to FDIC's proposed rules on loans in areas having special flood hazards.  The letter drew attention to IBAT member concerns regarding:

  1. The ability to determine if private flood insurance is at least as broad as policies provided under standard National Flood Insurance Program policies;
  2. Escrow requirements for all loans subject to mandatory purchase requirements regardless of whether the loan closed before or after the rule’s effective date; and
  3. A lack of clarity as to whether banks have the ability to recoup costs incurred in obtaining force placed insurance in the event of borrower default.

IBAT members are encouraged to use the filed letter as a guide in crafting their own letters on this issues.  As always, bank-specific information on the impact of the proposed rule on your bank is highly encouraged in your letter.

Year-End Final Rules


Last week, federal regulators spread an ample amount of Christmas cheer, releasing a bevy of final rules and other compliance issuances of interest to IBAT members.  Given the space limitations of this publication, IBAT staff has elected to produce a publication dedicated to these rules, set for release on Thursday of this week.

Among other year-end compliance issues, the publication will cover:

Thank you for your patience as IBAT staff continues to evaluate these issues. Please be on the lookout for our additional publication on Thursday.

Mortgage Product Matrices


We have added product matrices for each of the potential mortgage types to help bankers prepare for the upcoming January deadlines. The matrices include:

Each matrix covers the potential civil liability risk, the mortgage requirements and prohibitions by type, and minimum underwriting criteria.  

The matrices can be found on the IBAT CFPB Residential Mortgage Rules page.

Save the date for IBAT's 2014 Lending Compliance Summit, which will take place April 17-18.

IBAT Expands Presence in D.C.


IBAT is pleased to announce it will begin a relationship with the Policy Resolution Group (PRG) of Bracewell & Giuliani effective January 1, 2014.

PRG, based in Washington, D.C., will provide strategic advice and represent IBAT on Capitol Hill, helping IBAT advocate for legislation that would provide regulatory relief for community banks. Given the current regulatory environment with ever-increasing pressures and compliance burdens that disproportionately affect community banks, the IBAT Board of Directors voted to engage PRG to help IBAT pursue legislative relief from these burdens.

"We could not be better represented by the fine work being done by our national affiliate in Washington, the Independent Community Bankers Association of America (ICBA)," said IBAT President and CEO Chris Williston. "Our relationship with PRG will be in total concert with the legislative priorities established by ICBA and their state association affiliates, and we will be ready to assist when additional boots on the ground are needed."

"The IBAT Board has really stepped up our Washington presence by committing additional resources to help reduce the regulatory burden that is crushing our community financial institutions," added IBAT Chairman Jay Gober. "Our franchise value is being eroded and we need to continue to urge Congress to pass meaningful regulatory relief legislation as soon as possible."

Additionally, IBAT will continue its relationship with Jim Wise of the PACE Group LLP, who has been advising the association and assisting in their DC advocacy efforts for the past ten years.

Compliance Checklist


On December 3rd, the IBAT Bottom Line featured our annual end-of-year compliance checklist, compiled by IBAT General Counsel Karen Neeley.  

In last week's Bottom Line, IBAT Regulatory Compliance Manager Kelly Goulart expanded on that with tips about HMDA and CRA. 

In part II and part III, expanding on the end-of-year compliance checklist, he provides tips on:

  • preparing for changes in products, services, and fees; 
  • handling "dormant" and "inactive" accounts; and 

preparing for the CFPB mortgage reforms.

Week in Review: December 13, 2013


Depending on where one lives, winter is already starting to hit pretty hard. And it’s not even winter yet. The same might be said for consumers who are, apparently, hitting the malls pretty hard and it’s not even Christmas yet. Retail Sales in November rose by .7%, the highest monthly increase since June. If that’s good news, then the .2% upward revision in October’s number is a little seasonal sweetener. There was a sour note that accompanied the sweet, however, as Initial Jobless Claims rose by a much higher than expected 368k. Only one weekly report since March has been higher.

Something else that moved higher, but in a good way, was the National Federation of Independent Business Optimism Index. The NFIB’ers are feeling better about things as the value of that index rose to 92.5 from 91.6. Maybe that has something to do with the higher than expected number of job openings as measured by the JOLTs report (job openings and labor turnover). That measure rose to... Read more in the Baker Market Update.

TechMecca 2014


We invite you to register for TechMecca 2014!  This year's event theme is C (compliance) - O (operations) - R (risk management) - E (enterprise efficiency)!

Compliance sessions include:

  • Is Your Bank Ready for Today's Mortgage Customer?
  • EMV Forum: Following the Expectations of EMV and How it Will Impact Your Bank, Merchants and Customers
  • Current IT Challenges in Banking and Efficient Solutions
  • The Lurking Menace: Cybercrime, Data Security and Privacy Rights
  • The A to Z's of Vendor Management
  • Understanding and Building a Proactive ATM Upgrade Plan to Stay Compliant and Competitive

Conference Registration Fees (Three-for-One Pricing)
$695 for up to three attendees from the same financial institution if registered at the same time.  You must pre-register to be eligible for this offer.  No free registrations will be granted on site.  Each additional or any single registrant will be $445 per person.

 

Education Foundation Board


We are excited to announce that Mary Scott Nabers, president and chief executive officer of Strategic Partnerships, Inc. (SPI), was recently elected to the IBAT Education Foundation Board of Directors. Nabers is a well-known expert in public-private partnerships with an extensive business background in both public and private sectors.

In addition to leading SPI, she is co-founder of Gemini Global Group (G3), which specializes in business development, public-private partnerships and government affairs. We are confident that Nabers' impressive background and level of experience will help bring the Foundation closer to achieving its mission of “building financially literate communities."

Compliance Checklist


Last week, the IBAT Bottom Line featured our annual end-of-year compliance checklist, compiled by IBAT General Counsel Karen Neeley. This week, IBAT Regulatory Compliance Manager Kelly Goulart shares the first part of his expanded checklist, which includes:

  • Scrubbing your HMDA Data;
  • Preventing Government Monitoring Information and Action Code errors; and
  • Updating your CRA Public File.

Next Tuesday's final 2013 regular edition of the Bottom Line will feature parts two and three of Kelly's year-end list.

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